Question

A person places $6860 in an investment account earning an annual rate of 2.9%, compounded continuously. Using the formula

V
=
P
e
r
t
V=Pe
rt
, where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 11 years.

Answer 1

9514 1404 393

Answer:

$9,437.65

Explanation:

Fill in the given numbers and do the arithmetic.

`V=Pe^(rt)\\\\V=\$6860\cdot e^(0.029\cdot 11)=\$6860\cdot 1.375751\\\\\boxed{V=\$9{,}437.65}`